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Biotech Analysis Central Preview Series: Oncternal Therapeutics

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This is a preview blog series on what you can expect when subscribing to my "Biotech Analysis Central" service marketplace. For the full article you must subscribe to my service. This is just an intro of two snippets on the research articles that are written. Thus far, there are about 300+ research reports on both both small-cap and mid-cap biotech stocks with full analysis of the pipeline, catalysts, financials, and clinical trial analysis. If you want to read more then please subscribe to my marketplace service. As always I offer a 2-week free trial just to show you how helpful my service is. You can cancel anytime before the 2-week free trial is up and never be charged a dime.

First Section Of Marketplace Article (This article piece was originally written on December 12, 2020)

The next article I wanted to discuss for the "Biotech Analysis Central Stock Insight Series" is a biotech by the name of Oncternal Therapeutics (ONCT). The reason why I want to go over this biotech next is because I believe it has massive potential in using its drug Cirmtuzumab, which is a monoclonal antibody that targets ROR1. This is becoming a very popular target in the oncology space, and this company has the potential to capture that value if results from its ongoing studies turn out to be successful. Besides using a monoclonal antibody drug Cirmtuzumab as a ROR1 target, Oncternal is also developing a CAR-T program that targets this specific protein as well. This is good because it provides two shots on goal in targeting the ROR1 protein. This is a big target and many oncology companies are going after it. One item to note is that in recent months big pharma have either made deals with or bought out biotechs developing a ROR1 inhibitor drug. In addition, it's important to note that each drug is different. Meaning some are antibody drug conjugates (ADCS), small molecular protein and monoclonal antibody. Therefore, each one may have variable efficacy. The point is that ROR1 has been solidified as a good target. Lastly, there is a 3rd product candidate in the pipeline known as TK-216 and this is an ETS oncoprotein inhibitor. Oncternal Therapeutics had merged with GTx Inc back in 2019. The end result is the biotech that is formed to this day. The company is even solid on cash, which reduces risk further. The company raised an oversized offering of about $75 million. That means it should have plenty of cash runway now for at least the next few years. That minimizes the risk of any type of dilution in 2021.

Conclusion Of Marketplace Article

The Final Verdict is that Oncternal Therapeutics is a good buy in my opinion. I believe it is because the Cirmtuzumab drug in relapsed/refractory CLL/MCL has been de-risked. It may or may not trade lower in the short-term due to profit taking, but looking at it long-term I believe it is in good shape. Not only that, but the targeting of ROR1 protein makes it a suitable company for either partnering or an eventual buyout. I listed above the many companies that big pharma had acquired that were targeting ROR1. Granted those were antibody drug conjugates (ADCS), instead of a monoclonal antibody. Still, it seems that ROR1 protein targeting is quite effective if so many other companies are exploring it. In a way it kind of resembles the anti-CD47 space with several biotechs popping up in that area as well. I guess you could say the downside is that there are several competitors in place that are also targeting ROR1. However, without knowing the phase 3 results from each company, it is hard to compare with one another. Ultimately, it will depend upon phase 3 results on which ROR1 inhibitor comes out on top. Even if one is slightly better than the other, that doesn't mean there can't be multiple competitors in place. The stock was trading low at $2.65 on December 4, 2020. It is currently trading at $5.20 per share now. Why do I think it can trade higher? Primarily, because despite the run up in the stock recently, it still only carries a market cap of $116 million. I feel this is low, and should be trading higher with a market cap of at least between $300 million to $500 million based on positive data to date.

Analyst's Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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